China Cotton Association estimated that the year 2008 China’s total cotton production 7,800,000 tons. 2008 September-October, a total cotton imports of 225,000 tons, up 39% decline; textile production and export growth continued to slow down, a total yarn output of 3,770,000 tons, up 8.8% year-on-year growth rate has dropped by nearly 2.4 percentage points; Textile and garment export a total of 34,800,000,000 U.S. dollars, up 6.7 percent, year-on-year growth rate fell 16 percentage points. Although the full-year domestic cotton is expected to remain large gaps, but by poor sales of textile, cotton, to reduce the impact on demand, the current cotton market turnover was light, and prices continue to drop, standard-class cotton marketing year average price of 12,760 yuan / ton, down 5.7 year-on-year %.

In October, at the opening of a boll of cotton in China to stop growing, with the exception of cotton in the Yangtze River Basin of the month in a row late little rain as weather, the drying effects of picking cotton, cotton most of the rest of the fine weather in general, smoothly picking cotton, picking at the end of drawing to a close .

According to the China Cotton Association to monitor the cut-off on October 30, surveyed the average seed cotton farmers picking the progress of 88.5 percent, representing a 2.2 percent increase over the same period last year. However, since the new year cotton prices continued to fall, the processing enterprises to buy care in some areas has been difficult to sell cotton, cotton farmers appear discontent, sell seed cotton unusually slow pace, as of October 30, surveyed the average farmers sell Progress was only 33% year-on-year drop of 24 percentage points, on average, full-price sell 5.22 yuan / kg higher than in September fell 0.21 yuan higher than the same period last year, fell 0.75 yuan, or 13%.

October sales of lint is almost at a standstill, and the price of cottonseed sales prices continue to fall, cotton processing enterprises profits to be further compressed, pre-purchase price of cotton has been upside down, the suspension of the wait-and-see part of the business, the acquisition of seed cotton markets in the doldrums, with the exception of Xinjiang as a result of Shouchu rapid progress, slow progress in other areas. According to the China Cotton Association, monitoring, enterprises surveyed, nearly 40 are still not yet Kai Cheng, Kai Cheng Enterprises in nearly 10% of the business losses due to suspension. Month-class standards of seed cotton processing enterprises in the average price for the 5.23 yuan / kg higher than in September fell 0.25 yuan / kg lint discount 11,391 yuan / ton (not including processing fees).

With the international financial crisis continues to spread, the main importer of textile and apparel consumption growth is slowing down, or even negative growth, China’s textile and apparel exports fell for the third consecutive month, in October exports 16,750,000,000 U.S. dollars, the ring fell more than 7%. At the same time, domestic consumption is also difficult to change, and textile enterprises to adjust production, yarn production for the month 1,861,000 tons, the chain fell 2.3 percent, and sales are still in the doldrums, with the price of cotton price down. Textile enterprises in order to maintain wait-and-see-oriented production and procurement scarce, prices continue to speed up the pace. China in October cotton price index (CC Index328) fell below the 12,000 yuan / ton, hitting the lowest level in nearly four years, on the whole fell by a total of 1077 yuan / ton, or 8.4 percent. In October the average price of 12,322 yuan / ton, down 855 yuan more than the Central / ton. The same period in Zhengzhou cotton futures prices and the National Cotton electronic trading market continues to drop together. Due to insufficient domestic demand, as well as quasi-sliding tax cotton price higher in October to replace imported cotton, only 96,000 tons, and the ring than the same period last year respectively, dropped 26% and 30%.

For the decrease in the price of cotton, cotton farmers to protect the interests of stability in the domestic cotton market, the state of emergency start-control measures in Xinjiang Shouchu 220,000 tons on the basis of 12,600 yuan to continue / ton price Shouchu 1,000,000 tons, and Part of the mainland, including cotton. Shouchu containment of the cotton price down to play a role, but failed to control the situation in the cotton price down, Shouchu price and market price of a departure from the trend of the market situation is very critical. Faced with this situation, at all levels of cotton, textile associations have made criticisms and suggestions, recommendations of the comprehensive policy measures start to take the textile industry and increase Shouchu efforts to protect the interests of farmers. To enter in November, the state held a meeting in a row, set a series of measures for stimulating domestic demand, which in the textile industry, will further increase the export tax rebate rate and increase financial support for efforts to promote industrial upgrading, and so on, in the area of cotton is also concerned that it will Shouchu continue to intensify efforts. With the expected promotion of these measures, cotton prices are expected to ease the situation.